A corporation uses a predetermined overhead rate based on direct labor$-$hours to apply manufacturing overhead to jobs. The corporation has provided the following estimated costs for the next year:

Direct materials $ $6,000$

Direct labor $ $20,000$

Rent on factory building $ $15,000$

Sales salaries $ $25,000$

Depreciation on factory equipment $ $8,000$

Indirect labor $ $12,000$

Production supervisor's salary $ $15,000$

The corporation estimates that $20,000$ direct labor$-$hours will be worked during the year. The predetermined overhead rate per hour will be:

Multiple Choice

$$2\mathrm{.}50$ per direct labor$-$hour

$$2\mathrm{.}79$ per direct labor$-$hour

$$3\mathrm{.}00$ per direct labor$-$hour

$$4\mathrm{.}00$ per direct labor$-$hour